Among manifestation stocks, HDFC Bank was the major loser, down 9.5 apiece cent by the side of Rs 2,053. Jaiprakash Associates, Larsen & Toubro, HDFC, Reliance, Tata Steel, Bajaj Auto, NTPC, Maruti Suzuki, Infosys and Cipla shed five-eight apiece cent both. Bharti Airtel, up single apiece cent, was the sole notable gainer.
Once underneath the crucial support zone, near were rebuff takers in the marketplace. The Nifty, similar to infringement 5,870 on the basic daylight hours of the week, witnessed unabated promotion and eventually dished underneath its topical November low of 5,690. The manifestation ended the week with a loss of 4.2 apiece cent (250 points) by the side of 5,655.
The NSE Nifty is in a jiffy immediately 44 points shy of its long-term (200-days) on a daily basis poignant usual (DMA). Last schedule the manifestation dished underneath this major level was in May 2010, following which it recovered quickly inside a span of six trading days. However, in 2008, whilst the Nifty broke underneath its 200-DMA, we witnessed a steep fall of on 56 apiece cent in the following months, and the manifestation took almost 11 months recoup.
<B>Case 2008 v/s 2010</B><BR>
The goal in place of the steep fall in 2008 was total economic calamity, where the humankind markets went in a uncontrolled fall and near was a panic-like position. However, in 2009, whilst the markets dished pithily, FIIs and India Inc remuneration bowed the tide in favour of a quick return to normal.
The position this schedule is completely diverse. On the helpful front, the humankind markets are by the side of multi-month highs compared to the weakness in our markets. On the harmful front, we are in the remuneration season, but the better reservations in place of us are addition by FIIs and rate increases.
Also, this schedule, more than the lucrative and fundamental factors, technicals may well theatrical production killjoy in place of the bulls, as almost 2/3 of the Nifty 50 stocks are trading either on the verge or of underneath the 200-DMAs. While many as 14 Nifty components maintain destroyed underneath the 200-DMAs so far this time. And more importantly, these include go for heavyweights like ICICI Bank, Larsen & Toubro, ONGC, Reliance Industries and State Bank of India. Other major stocks are - Axis Bank, Bajaj Auto, BPCL, HDFC Bank, Hero Honda, IDFC, Kotak Mahindra Bank, Maruti and Punjab National Bank.
Earlier, in 2010, 12 more stocks which slipped underneath the 200-DMA are yet to recover. Prominent between these are BHEL, DLF, NTPC, JP Associates, Reliance Communications, Reliance Infrastructure, SAIL, Sesa Goa and Suzlon. Others are Power Grid, Reliance Capital, Reliance Power.
HDFC, Ambuja Cement, Cipla, Jindal Steel, Siemens, Sterlite and Tata Power are the other seven stocks which are on the verge of infringement the long-term poignant usual.
Given this dicey position, it seems with the aim of the bears definently maintain the better employee. However, it ought to be famous with the aim of the Nifty is course towards multiple support levels. Hence, bottom-fishing by the side of lesser levels cannot be ruled barred as on a daily basis charts are close to the oversold zones. The 200-DMA is by the side of 5,600 and the medium-term (50-weeks) poignant usual is by the side of 5,500. A break of both in the most awful legal action scenario may well find out the manifestation drop to 5,250, the short-term (20-months) poignant usual.
All-in-all, it’s going away to be yet an extra changeable week certain the dogfight on the remuneration front and government moves to tackle inflation. Weekly support is seen by the side of 5,550-5,490 and resistance by the side of 5,755-5,820.
Barring Bharti Airtel, Hero Honda, ACC, ONGC, Power Grid, Reliance Communication and Sesa Goa, nearly everyone other Nifty 50 stocks are likely to exert downward pressure.